April 14. 1866. N. 1181

The Economist, 14. April 1866. S. 437/438.
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The State of the Money Market.  Zusatz von Marx.

 Bemerkung von Marx.
Folgende köstliche Klugscheisserei à l’envers:

Many persons, especially those old enough to remember past times, and so to form their standards by those times, have great difficulties in comprehending the present times. A new element has been introduced which they do not appreciate, and of which they do not follow the effect. Formerly great disasters occurred together. A fancied cycle of 10 years has been laid down for their recurrence. But now failures happen at comparatively distant intervals. After a period of excited business like 1863 and part of 1864 many failures are inevitable. The number of mistakes is so great as to ensure an equal number of ruins, and these are now happening from day to day. First the Joint Stock Discount Co., then another Co., then a private firm … But the misfortunes of these people now hurt no one but themselves. The Bank of England now manage well and they used to manage ill. The directors used to let the reserve run low, and at every period of consecutive failures there was then the probability of a panic. Now the B.o.E. manage well, keep their till full, and the failure of 50 discount cos., and the depreciation of all manner of shares, produces no real effect on the world at large. We are now carrying on the trade of the country with a sufficient balance at our bankers; we used to carry it on with an insufficient balance. …  Zusammenfassender Kommentar von Marx.
Der wiseacre prophezeit, daß money auf 5% fallen wird.
 |44 Our Credit is on the whole excellent.

As to bullion: The peculiar cause which has affected our cash balance of late years was the necessity of paying in bullion for cotton.

Imports of Cotton in the Two Months ended Feb. 28.
1864 1865 1866
cwts cwts cwts
From U. States 721 5,719 570,735
Bahamas und Bermuda 41,955 69,094 2,551
Mexico 9,411 49,645 1,391
Brazil 41,869 69,981 93,728
Turkey 18,540 23,345 13,616
Ejypt 159,591 322,663 148,268
Brit. India 233,645 186,104 305,907
China 28,988 45,652 …   
Other countries 10,010 39,398 17,926
Total 544,754 811,601 1,154,122.

Aber die increase owing to the new imports von den Un. St., für welche in commodities und nicht in bullion gezahlt wird. Taking the difference of price into account, the Oriental demand is less than last year for past imports, and while cotton falls as now, no speculative outlay is likely.

The imports of corn much heavier this year than last, nämlich:

Imports of Corn in the two months ended Feb. 28
1864 1865 1866
cwts. cwts. cwts.
Wheat from Russia 532,722 588,089 2,310,657
Prussia 850,482 133,239 148,483
Denmark 161,248 59,448 28,803
Schleswig, Holstein u. Lauenburg 73,112 20,819 22,437
Mecklenburg 107,094 24,828 4,550
Hanse Towns 105,065 74,905 16,414
France 281,628 71,571 745,439
Turkey, Moldavia, Wallachia 128,868 37,923 143.140
Ejypt 206,003
United States 1,167,253 118,790 259,797
Brit. Nort America 10,838 2,294 8,727
Other countries 68,996 58,558 490,230
Total: 3,693,309 1,130,464 4,178,686
Barley 1,009,036 1,097,846 905,285
Oats 490,297 547,555 617,719
Peas 141,759 29,621 97,384
Beans 241,525 85,992 37,767
Indian corn or maize 285,372 780,078 2,439,627
Wheatmeal and flour from France 625,424 344,781 1,048,539
from Hansetowns 68,877 29,255 26,624
from United States 350,727 48,303 120,997
Brit. North America 3,779 8,024 4,343
Other countries 9,818 7,438 55,116
Total 1,058,625 437,801 1,255,619 |


The Economist, 14. April 1866. S. 439–441.
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The American Paper Money.

An irredeemable currency is a local currency. It only affects trade within the state, has no effect on trade between that state and other states.

F.i. An English merchant ships goods to New York, sells them for greenbacks, cannot use them in and have them remitted to England. He must buy one of 3 things with them, other goods or gold, or a bill of exchange. When he buys either of these he suffers by the depreciation of the currency as much as he gained before. [»]At first, the depreciation of the currency acts upon some commodities and not on others; those articles desired by the first possessors of the new currency are the first to rise, and then those desired by the second possessors, – those who have sold their goods to the first, and so on through society. But there is no general rule that imported products should feel the influence of new money first; it all depends upon what the first purchasers want to buy: those articles rise first, the rest rise afterwards.«

The Economist, 14. April 1866. S. 444/445.
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Isaac Pereire’s Evidence before the Banque Enquête.

Is. Pereire. Whilst the B.o.E. escaped from the consequences of the crisis of 1847, owing to the power of extending its issues, it was by the sale of its rentes to Russia, that is to say, by the realisation in coin of the immobilised portion of its capital, that the Bank o. France attained the same object. The year following, in 1848, the capital of the B. o. France being again placed in rente, it was obliged to solicit from the Gvt. the suspension of the cash payments for its notes. … the B. o. Engld. only needs the power of issuing more notes, the B. o. France is in need of more money.

There is no mutual dependence between the 2 establishments. The B. o. France might easily maintain its discount when the B. o. Engl. raises it rate. The proof is that now (26 Dec. 1865) there is a difference of 2% between the 2 banks. The discount is at 4 in France, and 6 in England, and yet gold from that country is constantly flowing in here, which indicates sufficiently that the B.o.F. has nothing to fear from the B. o. Engl. If the difference were to attain 3 or even 4%; the same would be the case, if the exchanges were in favour of France. That fact, besides, is not new, for in 1847 a difference of 3% long existed in the discount of the 2 countries.

When the Bk.o.E. raises its discount, a certain superfluity of bills of exchange payable at London comes naturally to Paris to find an easier and more advantageous market. The B. o. France, in such a case, instead of following the B.o.E. in its usurious policy – to take itself part of these bills of exchange, and so aid our neighbours. This indirect assistance, which would give it the opportunity of very usefully employing parts of its funds, would promptly put an end to the ephemeral crises which arise each year; it would enable the B.o.F., if necessary, to exercise a salutary action on exchanges, or … by the negotiation of those same bills when the price of paper on London should have a tendency to rise, in a proportion disquieting to its till. The Bank o. F. could besides if necessary employ those bills on London to purchase gold in England.

The Economist, 14. April 1866. S. 447.
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Cotton during the civil war.

 Kommentar von Marx.
(Der Kerl übersieht, rechnet nicht ein, die Schwarzerde etc)

 Von Marx verwendet in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 68.19–24).
The (British) export of yarn and manufactured goods in 1862, 1863, 1864, more than equalled all the supplies of cotton during those years; the former amounting in weight to 1,208,920,000 lbs; and the latter, after deducting the raw cotton re-exported, and reducing the remainder to its equivalent weight in yarn, being only 1,187,369,000 lbs.
Folgt daher:

1)  Von Marx verwendet im Brief an Engels vom 9. Dezember 1868. Siehe auch die Briefe von Marx an Engels vom 12. und 14. Dezember 1868.
on 1. Jan. 1862 in the U. Kingd. stock of raw cotton and cotton manufacturers more than sufficient to supply the home consumption for 3 years;
and that the  Von Marx übernommen in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 68.26–27).
people here have been provided during this period with clothing, whose material previously here accumulated

2) The enhancement of prices, which, within the period named, amounted to 100%, was not really paid by the people of this country, taken collectively; viz[.], so far as the stocks on Jan. 1 1862, belonged to natives or residents in this country. … The advance (vor dem 100% Aufschlag) of cotton prices already materially before the end of 1861, and attained their highest range in the summer of 1864; from which there was a decline of 25% before the end of the year. But the prices of yarns and manufactures had risen but little before January 1862. In 1865 a lower range of prices on the whole prevailed, and the supplies were more than sufficient to cover the export: being |46 equivalent to 580,714,000 lbs of yarn against 478,240,000 exported, the difference, however, furnishing only 2/3 of the estimated home consumption.

 Zusatz von Marx.
(All dieß stüzt sich auf report of Messrs. Ellison and Haywood, published in der annual review des Economist 10 March 1866)
This relates solely to the prices paid for cotton and cotton goods in this country, which do not seem to have occasioned a direct national loss during the period of the great rise of prices. The effects of the diminished supply of cotton in the enforced reduction of consumption, the curtailment of wages, loss of interest on capital invested etc, certainly constitute a very serious national loss.

 Marx übertrug diese Tabelle in seinen Brief an Engels vom 12. Dezember 1866 und übertrug und übersetzte sie in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 68) und diskutierte dort die Angaben.
Statistics of Cotton in the U. Kingd. 1862, 1863 und 1864.

1862 1863 1864
Cotton imported 533,176 691,847 896,770 thousands of lbs
  Do.    exported 216,963 260,934 247,194
Available to Consumption 316,213 430,913 649,576
Waste in spinning 53,756 64,637 90,940
Equal to production in yarn of 262,457 366,276 558,636 Total 1,187,369
Export of yarn 88,554 70,678 71,951
Do. in piecegoods etc 324,128 321,561 332,048
412,682 392,239 403,399 1,208,920

2 March 1867. N. 1227.

The Economist, 2. März 1867. S. 231/232.
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Mr. Leeman’s Bill for Regulating the Sale of Bankshares.

To prevent the „bear“ operations on the stock exchange in Bank shares. At the time, when credit was much disturbed, speculators sold, for future delivery, shares in banks on a large scale, which they did not possess – they then propagated bad rumours as to these banks – thus depressed the prices of the shares – they then gained the difference between the comparatively high price at which they sold the shares when the bank credit was good, and the comparatively low price at which they bought, when partly by their own machinations the bankcredit had become bad. Often great profits in this way gained last year. On the shares which, like those of the Agra and Masterman’s bank, went forth at a high premium, and then, by the failure of the bank, fell to be worth less than nothing, the differences were often very large. The dealers in bank shares gained by the destruction of the whole bank, and intended so to gain. Leeman’s bill checks this practice by providing; providing that no man shall sell bank shares which he has not got, and requiring, as a guarantee of his having them, that he shall state their „numbers“ in the register when he sells. Nobody could then sell bank shares which he hoped to buy in the market, because he would never know that he could get hold of the particular shares his sale note mentioned … The price of bankshares is, now that the blot is hit and the danger known, more depressed by its being known that this kind of property is subject to annihilation by well planned machinations than it would be depressed by the exclusion of bankshares from the speculative market.

The Economist, 2. März 1867. S. 233/234.
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Board of Trade Returns.

1864 1865 1866
Exports: 160,449,053£. 165,835,725 188,827,785.
Exports in December only: 12,095,437£. 15,030,088 14,914,363.

Computed value of the principal Articles Imported for 11 months: 1864: £197,448,426. 1865: 180,820,357. 1866: £211,539,785

1864 1865 1866
In November only the imports were £.16,164,570 19,190,403. 17,841,738.|


  • London. 1868.
  • 1866 „The Economist“ (Jahrgang 1866) vol. XXIV.
  • The Social Economist, 1. Oktober 1868
  • „The Economist“ (Jahrgang 1866) (Fortsetzung)
  • Jahrgang 1867.
  • Register der obigen Auszüge aus dem Economist für 1866 und 1867.
  • The „Money Market Review“. Jahrgang 1866.
  • The Money Market Review. Jahrgang 1867.
  • Register Money Market Review Jahrgänge 1866 und 1867